£21m investment will bring tech hub to city
ANEW tech hub will be set up in Cardiff as part of a UK-wide network of regional hubs under a £21m investment announced by the UK Government.
Tech City UK and Tech North will become a national organisation, Tech Nation, to speed up the growth of the UK’s pioneering and innovative digital companies and clusters, helping spread the benefits even further.
Successful companies which have benefitted from Tech City UK’s work include Just Eat, Zoopla and Funding Circle.
As part of the plans, Tech City UK will offer support to up to 4,000 tech businesses through targeted growth programmes and give more than 40,000 people the opportunity to develop the skills needed to start or grow a digital business.
The first set of hubs to form Tech Nation will be located in Cardiff, Birmingham, Edinburgh, Glasgow, Belfast and London. The full list of locations will be announced at the Budget.
Welsh Secretary Alun Cairns said: “This is fantastic news for south Wales’ already thriving tech sector.
“The digital sector has become an integral part of the Welsh economy and the rapid growth of many digital businesses across the country has confirmed our position as a hub of technological excellence.
“Today’s announcement seals south Wales’ place as a regional centre of technology excellence, and the UK Government is committed to ensuring the continued growth of this sector across the country.”
The 11 regional hubs will form the backbone of a national network of digital excellence to reflect the country’s standing as a global powerhouse for tech industries and help the Government achieve aims outlined in the Industrial and Digital Strategies.
The funding will also help entrepreneurs in emerging tech sectors, such as artificial intelligence (AI) and fintech, by connecting them to peers and potential investors in other hubs across the country and by offering tailored development programmes.
More than 1.4 million people work in the UK’s digital tech sector and jobs are being created at twice the rate of other sectors in the economy. Average advertised salaries are £50,000 – 30% higher than the national average.
The sector has a turnover of more than £118bn and in the first half of 2017 there was a record £5.6bn invested in tech in the UK by foreigh investors.
Successful Tech North programmes such as Founders Network and Northern Stars will be extended nationally, and existing national programmes such as Future Fifty and Upscale will be strengthened.
David Buttress, former CEO and cofounder of Just Eat, said: “Tech City UK and the Future Fifty programme have given fast-growing companies like ours a great opportunity to learn from our peers and exchange ideas.
“They have also enabled us to get our voice heard in government, so that we can give our point of view on the way our working world is changing. That will continue to be extremely important for all emerging tech sectors.”
The funding will see the new Tech Nation work alongside existing tech partners and business organisations to accelerate the expansion already underway by rolling out its tech-hub model.
Minister for Digital Matt Hancock said: “This new funding is an important part of our plans to make the UK the best place in the world to start and grow a digital business, with the benefits spread right across the country.
“This regional network will accelerate the growth of the digital tech sector, cement the pipeline of talent and spark the next generation of innovative firms to seize the future opportunities of digitisation – bringing jobs, skills and higher productivity to our regions.”
Gerard Grech, CEO of Tech City UK (soon to be Tech Nation), said: “Tech Nation will help transform the UK from a series of standalone tech clusters into a powerful national network that will reinforce the UK’s position at the top of global tech rankings. This will ensure we continue to be at the forefront of digital innovation, developing tech talent and attracting international investment.”